The S&P 500 hasn’t made a new all-time high since early June, and volatility appears ready to dominate market narratives once again. A dispersion trade, i.e., financial stocks rising when tech stocks fall, has buoyed indices from a sharper decline, but the market is starting to look disjointed as the AI trade emits hiccups.
Who benefits from outsized volatility? Fee-based asset managers and market makers, and three important companies in this industry just reported earnings. If you’re considering a wager on continued volatility, be sure to digest the Q2 reports from these three firms.
